Rexel raises outlook again as US data-centre demand, European electrification drive growth

By Leo Marchandon

Oct 22 (Reuters) - French electrical equipment distributor Rexel raised its full-year targets for the second time this year on Thursday after strong demand from U.S. data centres and Europe's electrification drive lifted third-quarter sales by 11.4%.

Over the first nine months, group sales rose 7.3% at to €15.44 billion ($17.28 billion), with the US up 10.7% at €6.08 billion and Europe up 3.2% at €7.15 billion.

Rexel now expects full-year sales growth of about 7%, up from about 5%, and an adjusted EBITA margin of at least 6.4%.

"There is a real contrast between the nervousness of financial markets and results that show no sign of weakness or slowdown," Chief Executive Guillaume Texier told Reuters.

Texier said the US remained the centre of the global data-centre buildout because the largest investors, including hyperscalers, were mainly building capacity in their home market.

Rexel's European growth is being driven by what Texier described as a structural shift towards electrification, with demand for heat pumps, solar panels, EV chargers and air-conditioning systems continuing to expand.

"More and more, people in areas hit by heatwaves realise this is not a short-term phenomenon," he said.

Texier said the GCG acquisition would add more than €1 billion of revenue and was expected to close by the end of 2026. The deal was partly funded through a 500 million euro share sale, leaving room for further acquisitions.

($1 = 0.8937 euros)

(Reporting by Leo Marchandon in Gdansk; Editing by Matt Scuffham)